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What's in Store for Alpha and Omega's (AOSL) Q2 Earnings?

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Alpha and Omega Semiconductor Limited (AOSL - Free Report) is scheduled to report second-quarter fiscal 2021 results on Feb 4.

For the second quarter, the company expects revenues of $150-$156 million. The Zacks Consensus Estimate for the same is pegged at $153 million, indicating an improvement of 29.8% from the prior-year quarter’s reported number.

Further, the Zacks Consensus Estimate for earnings stands at 53 cents per share, indicating growth of 130.4% from the year-ago quarter’s reported figure.

The company’s bottom line topped the Zacks Consensus Estimate in three of the trailing four quarters, meeting the same once. It has an earnings surprise of 60.99%, on average.

Factors at Play

Alpha and Omega is expected to have gained from strong battery protection business in the soon-to-be-reported quarter

Further, the coronavirus outbreak-induced growing sales of gaming, TVs and home appliances are expected to have benefited the company’s performance in the consumer end-market in the fiscal second quarter.

Furthermore, growing shipments of Alpha and Omega’s products required in computing and gaming applications are expected to have contributed well to its performance in the quarter under review.

Also, strengthening momentum across new gaming systemsand PC graphics card platforms is anticipated to have aided the company’s multi-sockets design wins in the fiscal second quarter.

Moreover, increasing uptake of gaming applications, and well-performing DrMOS and digital power solutions are expected to have driven growth in the company’s graphics card business.

Apart from this, the impacts of improving supply chain in Alpha and Omega’s JV fab in Chongqing are likely to get reflected in its fiscal second-quarter results.

However, weak demand for quick chargers and DC Fans is expected to have negatively impacted the company’s Power Supply and Industrial Segment in the quarter under discussion.

Also, sluggishness in AC-DC power supply is expected to have remained an overhang for the company in the fiscal second quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Alpha and Omega this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Alpha and Omega has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some companies, which have the right combination of elements to post an earnings beat this quarter:

Vishay Intertechnology, Inc. (VSH - Free Report) currently has an Earnings ESP of +4.82% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +0.42% and it presently carries a Zacks Rank of 2.

CDW Corporation (CDW - Free Report) currently has an Earnings ESP of +6.74% and a Zacks Rank of 2.

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